The Power of the 1% Contribution

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Today I want to tell you about a meeting I had with a 401k participant and how I showed him a simple way he could become a 401k Superhero to his future self when it looked like he might not be able to retire at all.

But first, let me ask you a question.

The question is, how do you become a 401k or 403b Superhero to your future self?

That is the question and these videos will give you the answers.

I’m Jonathon Schultheiss and welcome to the becoming a 401k superhero videos.

I was meeting with a participant in a conference room at his employer.

I can remember it like it was yesterday. He came in and sit down for the meeting and looking over at me and said, I can’t wait until I can retire.

I laughed a little as we pulled up his 401k account. We stared to talk about his account, I found that he was 52 years old, he made $40,0000 a year and he had saved $50,000 for retirement.

You see, at first it looked like there was no way this participant would be able to retire any time soon. I even joked with him and said, how long would like to retire, you have one year’s income here.

He didn’t think that was very funny.

I remember thinking, I have to share something valuable with him. I need to find a way that he can retire.

That’s when I remembered that I had a software tool that could illustrate making annual increases in his retirement savings.

I ran his number to show him that if he would increase his saving to his 401k plan each year by as little as 1%, he was projected to be able to retire in 15 years and be able to replace 80% of his income.

That 1% increase would only cost him $7.70 each week. That means that every year, he would increase the amount that he is saving by only an additional $7.70 a week. That’s almost the cost of eating out once a week.

You see, that small $7 increase was what helped this participant become a 401k superhero to his future self. That small $7 is what would allow him to be able to retire.

This is the power of making just a small 1% increase in your retirement savings each year. That 1% could be the difference of retiring and not retiring.

Have questions about your retirement? Reach out and let us see how we can help you become a 401k superhero to your future self.

Click on the link above and schedule a time to talk about your retirement, today.